Forex Trading: GBPUSD Technical Analysis – November 21, 2019

Great Britain Pound proceeds with a noticeable bearish candle against the U.S. dollar throughout the previous two days, on Thursday morning with a price tag of less than 1,3000, indicating a fall in price after the alarming economic release. Addressing the technical bias, it could remain bullish as a lower high could be seen during the last downside move

GBP/USD: Technical Analysis

The GBPUSD is traded around 1.2910 as of this writing. There are strong resistances that can force the price to stay below the said levels i.e.1.2991, the trend line resistance ahead of 1.3100, the psychological number. Another resistance may also prevent the price from moving upside, it stands around 1.3377, the major horizontal resistance, as shown in the graph below.

GBPUSD

Moving to the downside, several support levels can be seen including the main horizontal level that can come across the price around 1.2669, the trend line support which stands around 1.2501, and the Fib level of 23.6% that can support the price around 1.2294 helping the price to remain above those levels. The technical bias may remain bullish until 1.2637, the trend line support level remains in place.

GBP BoE Asset Purchase Facility Release

From a fundamental standpoint, In the United Kingdom, the Consumer Price Index published by the National Statistics dropped to 1.5 percent this month, below the previous month and the prediction of economic experts, i.e. 1.7 percent and 1.6 percent respectively.

The Gross Domestic Product calculates price movements by comparing the retail prices of a generic product and service shopping basket. Inflation drags down the purchasing power of GBP. A high reading is generally viewed as positive (or bullish) for GBP, whereas a low reading is perceived as negative (or Bearish).

Trade Idea

Keeping in view the price behavior of the pair over the past couple of days, opening a short term position for GBPUSD may not work well. However, if you are trading through a platform of our recommended brokers you may crack an advantage of competitive spreads.

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